Calculate the price-earnings ratio

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Question: You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition to retained earnings of $6.00 million and common stock dividends of $2.40 million. Roxie's year-end balance sheet shows common stockholders' equity of $37.2 million with 12 million shares of common stock outstanding. The common stock's market price per share was $9.20.

What is Roxie's Bed & Breakfast's book value per share? (Round your answer to 2 decimal places.)

Book value per share$

What is Roxie's Bed & Breakfast's earnings per share? (Round your answer to 2 decimal places.)

Earnings per share$

Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Market-to-book ratio times

Calculate the price-earnings ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price-earnings ratio times

Reference no: EM131961085

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